Well, the October 31 deadline may be well and truly behind us and appointments are starting to die down but the influx of work is still real. We are catching up however, Chris remains inundated with work for our business clients. As such, Chris will not be available be for individual Tax Returns until January. But fear not! We still have knowledgeable accountants who can assist you with your queries.
This is our last call for Tax Returns if you’re counting on some extra dosh in your pockets to fund your Xmas shopping!
🎄🎅🏻 Christmas/New Year Closure Dates 🎅🏻🎄
Our office will be closed for the Christmas New Year period from midday 20 December and will re-open on Monday 06 January at 08:30am.
If you haven’t lodged your return yet and are hoping to get this done before Xmas we recommend booking in or submitting sooner rather than later. We will be unable to guarantee lodgment on any individual returns submitted in the week leading up to our office closure.
ATO Closure
The ATO offices and contact centres will be closing down at noon on Tuesday 24 December and will re-open at 08:00am on Thursday 02 January 2025.
Messages from the ATO
Is your business getting bigger?
The ATO is contacting growing businesses who are now part of their Medium and Emerging program for private groups.
Read more
Small Business Superannuation Clearing House (SBSCH) end-of-year key dates
Take note of the annual office shutdown that impact SBSCH here.
Read more
Could your staff celebrations attract FBT?
Tips to avoid an unexpected FBT liability here.
Read more
Division 293 Tax:
What is it & when does it apply to you?
Division 293 Tax is an additional tax imposed on superannuation contributions for high income earners. It applies when your combined income and concessional (before-tax) superannuation contributions exceed $250,000 in a financial year. For those who are high income earners, saving for retirement may come a bit easier than those who are on a lower income level and as such the ATO applies the Division 293 Tax on those who earn more than most.
When your income and your concessional contributions exceed the income threshold for Division 293 Tax, the ATO applies a 15% tax on the concessional contribution amounts that exceed the $250,000 threshold. How the ATO calculates the Division 293 Tax is by taking your Division 293 Tax income and either using the amount you have exceed the threshold or your total concessional contributions and multiplying it by 15%. Whichever that is lesser is the amount that you will be required to pay.
For example, take John Smith who in 2024 earned a taxable income of $240,000 for the year and his total concessional super contributions was $25,200. This would mean that his income for Division 293 would be $265,200. In calculating the Division 293 Tax, he has exceeded the threshold by $15,200 which is less than his total super contributions, which means the 15% would apply to the $15,200. This would result in John having to pay $2,280 to the ATO for Division 293 Tax.
If you are not sure whether you have exceeded the Division 293 Tax threshold or if it applies to you, please contact our office to assist you further.
Talk To You Soon!
🎄 🎄 🎄 🎄 🎄
That’s it from us this year!
We’ll be around until the 20th if you have any questions, please don’t hesitate to reach out.
Otherwise, we wish you a safe and happy festive season!
Catch ya next year!